Question: Question 3:From the above table it seems that ri~~qi for small interest rates. Now we use Calculus to show this relation. From Question 1 and

Question 3:From the above table it seems that ri~~qi for small interest rates. Now we use Calculus to show this relation. From Question 1 and 2 we concludevi1vi=1ri=evi,i=1,dots12Use the tangent line for f(q)=eq at q=0(small interest rates) to show that ri~~qi for small interest rates.

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